Groundnut oil and fractions market in Southern Asia

Earlier Report Observations

The groundnut oil market in Southern Asia stood at 2 942 thousand tons in 2018, supported by India's position as the world's largest groundnut exporter and the commodity's nutritional value driving domestic and international demand. However, the market volume declined to 2 874 thousand tons in 2019 and dropped sharply to 2 370 thousand tons in 2020.

After the 2020 contraction, the market stabilized between 2 348 and 2 386 thousand tons. The modest recovery to 2 386 thousand tons in 2022 was supported by the revision of FSSAI quality and labeling standards for groundnut oil, which enhanced product reliability. In 2023, volume eased slightly to 2 360 thousand tons, while the emergence of premium segments like cold-pressed and organic groundnut oil catered to evolving consumer preferences.

In 2024, the government launched the National Mission on Edible Oils - Oilseeds (NMEO-OS) with a budget of Rs 10,103 crore to increase groundnut production and raised import duties on edible oils to support domestic oilseed demand, signaling a policy shift toward self-sufficiency.

Production groundnut oil and fractions in Southern Asia

In kind, 2017-2020, K t

Top producers of groundnut oil and fractions, 2017-2020

World map of production of groundnut oil and fractions, 2017-2020

Southern Asia's production of groundnut oil and fractions has declined for two consecutive years. In 2020, the region produced 2,370 thousand tons, representing a 17.3% year-over-year decrease. Looking at the period from 2017 to 2020, production fell by 9.9%, which translates to an average annual decline of 3.4%. The highest production level was recorded in 2018 at 2,936 thousand tons, which also saw the largest annual increase of 11.7%.

Annual dynamics of production in Southern Asia in kind, 2017-2020, K t

Exports groundnut oil and fractions from Southern Asia

Exports in kind, t

The export market for groundnut oil and fractions from Southern Asia showed significant volatility during this period. Exports reached their lowest point in 2019 at just 5 tons, then peaked in 2017, creating a 5.7-fold difference between these extremes. In 2020, exports rebounded to 20 tons, marking a substantial 317.8% increase compared to the previous year. The most significant decline occurred in 2018, when exports dropped by 60.9%.

Annual dynamics of product's exports from Southern Asia in kind, 2017-2020, t

From 2017 to 2020, Southern Asia's export destinations for groundnut oil and fractions were relatively balanced rather than concentrated in a few markets. Germany accounted for 35.0% of exports, followed by the United States at 4.8% and Switzerland at 3.1%. Together, these three countries represented 43.0% of total export flows, while numerous other countries made up the remaining 57.0%.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Asia in kind, 2017-2020

Exports in value, K $ US

The value of Southern Asia's groundnut oil and fractions exports showed an unstable pattern throughout the observed period. Exports reached their lowest point in 2019 at 21 thousand US dollars, then peaked in 2018 at 98 thousand US dollars, creating a 4.7-fold difference between these years. In 2020, export value recovered to 65 thousand US dollars, reflecting a sharp 213.5% increase compared to 2019. The most significant decline occurred in 2019, when export value dropped by 78.7%.

Annual dynamics of product's exports from Southern Asia in value, 2017-2020, K $ US

During the 2017-2020 period, Germany, Switzerland, and the United States formed the core group of trading partners for Southern Asia's groundnut oil and fractions exports by value. Germany accounted for 44.0% of export value, Switzerland for 14.2%, and the United States for 7.3%. Together, these three countries represented 65.4% of total export value flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Asia in value, 2017-2020

Imports groundnut oil and fractions to Southern Asia

Imports in kind, t

Southern Asia's imports of groundnut oil and fractions showed considerable fluctuations during this period. Imports reached their lowest point in 2020 at just 36 tons, after peaking in 2019 at 7,353 tons, creating a remarkable 205-fold difference between these two years. The 2020 import volume represented a dramatic 99.5% decrease compared to the previous year. The largest annual increase occurred in 2018, when imports grew by 53.7%.

Annual dynamics of product's imports to Southern Asia in kind, 2017-2020, t

From 2017 to 2020, Saudi Arabia and Indonesia were the primary sources for Southern Asia's groundnut oil and fractions imports by volume. Together, these two countries accounted for 2.4% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Asia in kind, 2017-2020

Imports in value, K $ US

The value of Southern Asia's groundnut oil and fractions imports displayed significant volatility during the observed period. Import value reached its lowest point in 2020 at 105 thousand US dollars, after peaking in 2019 at 16,801 thousand US dollars, creating a substantial 160-fold difference between these years. The 2020 import value represented a dramatic 99.4% decrease compared to the previous year. The largest annual increase occurred in 2018, when import value grew by 60.4%.

Annual dynamics of product's imports to Southern Asia in value, 2017-2020, K $ US

During the 2017-2020 period, Saudi Arabia, Indonesia, and France were the principal suppliers of groundnut oil and fractions to Southern Asia by value. Saudi Arabia accounted for 2.2% of import value, Indonesia for 0.9%, and France for 0.6%. Together, these three countries represented 3.8% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Asia in value, 2017-2020